Overview
International law firm McDermott Will & Schulte has achieved a major victory before the Unified Patent Court (UPC) Court of Appeal, successfully overturning a total of four million Euros security for costs orders in Syntorr v. Arthrex. The ruling marks a significant shift in how the UPC evaluates security for costs and confirms that well‑structured litigation insurance (ATE) with an anti‑avoidance endorsement (AAE) can eliminate the need for cash deposits or bank guarantees.
Representing Syntorr, Hon.-Prof. Dr. Henrik Holzapfel and Dr. Laura Woll, LL.M., both McDermott Will & Schulte, persuaded the Court that Syntorr’s ATE/AAE package removed any “legitimate and real concern” about adverse costs recovery. The Court emphasized features such as non‑voidability, direct rights for defendants, a simple payment trigger, and placement with an EU‑authorized Solvency II insurer.
The ruling provides a clear pathway for innovators and subject matter experts to pursue UPC litigation without immobilizing substantial capital, reinforcing the Court’s balanced approach to protecting defendants while keeping the system accessible.
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